FAST Channel Wild West – In the booming era of Free Ad-Supported Streaming TV (FAST) channels, a modern-day gold rush is beginning, reminiscent of the late-90s dotcom boom.
Operators are eager to establish their presence in this digital ecosystem, where demand is robust but business economics are as fickle as the Wild West.
Bad Streaming leads to no streaming.
The Challenge for FAST Channel Operators and AVOD Distributors
FAST channel operators stand at a crossroads. They seek revenue-sharing agreements to either move existing channels or start new ones, but many are reticent to invest in technology services until they see significant ad-funded returns from their current providers. This quandary has resulted in a reluctance to pay for what they see as unproven value, but a great desire to join the FAST channel revolution.
READ MORE: Putting Local TV In The FAST Lane As A Main Revenue Stream To Ensure Long-Term Sustainability
Kapang adx, in cooperation with View TV, provides a sustainable FAST Channel service that aims to transform viewer interaction into revenue. Kapang’s concept disrupts the conventional system, in which operators frequently require FAST platforms to handle tasks like as channel branding and content marketing, similar to a 50/50 collaboration. Contrary to expectations, Kapang has a 100% adpod fill rate, ensuring steady and sustainable revenue for channel operators.
READ MORE: FAST Is A Business Strategy, Not A Newly Created Television Format
Addressing Industry Skepticism with FAST Channels
Despite these offerings, Kapang faces mistrust from smaller, niche channels. These networks demand revenue schemes similar to YouTube’s, anticipating significant returns on their expensive programming. This sentiment originates from a lack of confidence in the industry’s capacity to keep its commitments.
A Strategic Alliance for Confidence and Growth.
To address this skepticism, Kapang has formed a partnership with View TV Studios to offer an ultra-low-cost service that amortizes operational expenses (opex) into net revenue distributions. This method is intended to instill first-hand confidence in an industry plagued by distrust. When performed effectively, this strategy can result in substantial returns on content and audience investments, demonstrating that the FAST channel ecosystem can be profitable and sustainable.
As the FAST channel market evolves, operators such as Kapang and View TV are forging new avenues to profitability. They hope that by providing new solutions and increasing industry trust, the FAST channel goldrush will lead to a successful future for all parties.
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